During yesterday’s session Goldsands Development Co. (OTC:GSDC) share price marked a new low for the past 52 weeks. It was also a session with a heavy volume, suggesting that neither the latest positive announcements nor its new SEC filings of GSDC could stop the lasting downtrend of the stock that led it even below $0.15 this month. 
GSDC new yearly low is at $0.09 after the session yesterday. The market closed at $0.10 and the trading volume for the day reached 1.40 million traded shares. It was among the most intensive sessions for the past months, but what is more disturbing is that investors were selling shares of GSDC without any apparent reason directly related to the company.
The latest news from Goldsands Development came out on July 19 and it announced the completion of the initial test mining program on the company’s Mika 2 gold concession in Peru. According to the press release, the final results are better than predicted by previous drilling. Yet, they were not good enough for investors, who have probably also read the latest SEC filings of GSDC.
The company will hold its Annual Shareholder Meeting on August 29, 2011 and among the issues that the shareholders will vote on is the increase in the authorized amount of common stock from 300,000,000 shares to 600,000,000 shares. This must have automatically made many investors see their stake in the company reduced, and the value of their investment as well, since such an action by a company usually implies it intends to issue new shares and dilute current shareholders.
Goldsands Development has already substantially diluted its shareholders in the past, but the real problem is that it has not yet led to any substantial progress in GSDC business. Between December 31, 2010 and March 31, 2011 the number of issued shares increased from 88 million to 187.5 million: 73 million shares were issued for the settlement of debt, 22.5 million for cash and 3.5 million for the acquisition of mineral properties.
